Articles Tagged with unsuitability

Aegis Brokers in Melville, NY and Boca Raton, FL Allegedly Unsuitably Recommended VRSPs to 48 Customers, Including Elderly Investors 

In July 2022, the US Securities and Exchange Commission (SEC) filed civil charges against Aegis Capital Corp., former Managing Director Alan Zelig Appelbaum, and ex-broker Paul Francis Gallivan. They are charged for allegedly unsuitably recommending variable interest rate structured products (VRSPs) to retail customers. These complex, structured products are usually issued only by well-known financial institutions.

According to the Commission’s settled administrative proceeding against Aegis, fourteen of its brokers from its Melville, New York and Boca Raton, Florida branches recommended VRSPs to four dozen customers for whom this type of investment was unsuitable. Without denying or admitting to the regulator’s findings, Aegis will pay a $2.3M penalty and $220K disgorgement plus prejudgment interest.

Former Spartan Capital Securities Broker Accused of Unauthorized Trading 

The Financial Industry Regulatory Authority (FINRA) has barred ex-Spartan Capital Securities registered representative Marc Augustus Reda. The broker is accused of excessively trading in the accounts of clients. During his 22 years in the industry, Reda worked at 15 brokerage firms. He has at least 20 disclosures on his BrokerCheck record that go as far back as 2000.

Our New York securities attorneys offer free, no-obligation case consultations to current and former customers of Marc Reda who suffered severe investment losses. If you would like to explore your legal options, contact us at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today.

Morgan Stanley Broker Thomas Bonds Has Three Investor Claims That Resulted in Settlements 

Our broker misconduct attorneys are investigating claims of losses involving current and former customers of Morgan Stanley broker Thomas Craig Bonds. According to his BrokerCheck record, the Kirkland, WA financial advisor has one pending customer dispute. In the investor’s FINRA arbitration claim, the claimant seeks $5M in damages and alleges unsuitability related to how the broker managed their account from April 2015 to September 2021. 

Unsuitability generally alleges that actions were taken by the financial advisor that were not a suitable fit for the investor given several factors, including: 

Berthel Fisher & Co Accused of Supervisory and Compliance Issues Involving a Customer 

The Financial Industry Regulatory Authority (FINRA) announced that Berthel Fisher & Co. had been ordered to pay a $100K fine. This fine concerns shortcomings related to compliance involving options trades in a customer’s account. The firm is not denying or admitting to the self-regulatory organization’s (SRO) findings. 

According to FINRA, in August 2015, while looking over a customer’s request for approval to trade options in his account, Berthel Fisher & Co neglected to conduct due diligence. The broker-dealer failed to ensure that this type of transaction was suitable based on the client’s investment experience. 

Calton & Associates Financial Advisor Accused of Unsuitability and Misrepresentations 

Paul William Murphy, currently a Calton & Associates registered representative, is named in two pending customer disputes where the claimants are seeking over $589K. These latest allegations appear to stem from when Murphy was a Newport Coast Asset Management and a Newport Coast Securities broker. Newport Coast was expelled by the Financial Industry Regulatory Authority (FINRA) in 2018. 

Our Florida broker misconduct lawyers investigate claims of losses by investors who have worked with Paul Murphy as their financial advisor. In Florida, call Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) at (813) 560-2992. You can also reach us nationwide at (800) 259-9010 today.

Cetera and Other Broker-Dealers May Have Unsuitably Sold St. George’s Ltd Products to Customers

Our broker misconduct lawyers are looking into claims of losses by investors who were marketed and sold products from St. George’s, Ltd. The Bermuda-based life insurance company has been in liquidation proceedings since 2019. Its owner, Ramesh Dusoroth, is accused of defrauding investors of millions of dollars. 

The joint provisional liquidators in this endeavor involving St. George’s Ltd. are John Johnston and Rachel Frisby of Deloitte, Ltd. Both of them are also involved in the liquidation proceedings of Northstar Financial Services (Bermuda), another offshore company that has been the cause of investment losses for many foreign nationals. Northstar (Bermuda) owner Greg Lindberg is now in prison, and he also likely misappropriated investors’ money. 

Ex-IFS Securities Broker Recommended Promissory Note to Elderly Investors

The Financial Industry Regulatory Authority (FINRA) has barred ex-IFS Securities registered representative Steven Douglas Schisler beginning January 31, 2022. Schisler, who works out of the Greater Sacramento, California area, has been a financial planner and investment advisor for over 20 years. He is also the principal of Synergy Wealth Management.

The industry bar comes in the wake of allegations that Schisler unsuitably recommended a promissory note to an older married couple. 

Atlanta Financial Advisor Accused of Using an Unsuitable Options Investment Strategy

Michael John Wagner, a longtime Morgan Stanley broker, is currently under scrutiny in the wake of recent customer disputes in which the claimants are requesting over $20M in damages. 

Based out of Atlanta, Georgia, Wagner has worked in the industry for 20 years. He has been a Morgan Stanley broker since 2012. Before that, he was a Merrill Lynch stockbroker and investment advisor.

Investors Are Seeking Six- to Seven-Figures in Damages 

If you suffered investment losses while working with former Worden Capital Markets broker Mark Sam Kolta, you may want to explore your legal options with a seasoned securities law firm. 

Kolta, who worked for 13 years in the industry, has 27 disclosures in his BrokerCheck record, 26 of which are customer disputes. A number of these are still pending, with some claimants requesting damages in the six and seven figures. 

Sarasota, Florida Investment Advisor Still Operates Kennon Financial

David Robert Kennon, a former First Allied Securities stockbroker, has three customer disputes listed on his BrokerCheck in which the claimants have accused him of making unsuitable investment recommendations. 

Kennon, who is no longer a registered broker, remains a registered investment advisor in Sarasota, Florida where he runs Kennon Financial. Our Florida investment fraud lawyers are investigating claims of losses by customers of David Kennon. 

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